Canada Day in Ontario: Your Employer’s Guide to Holiday Harmony (and Staying Out of Trouble)
Canada Day is coming in hot—cue the BBQs, loonie sunglasses, and spontaneous outbursts of “O Canada.” But before you dive headfirst into a plate of poutine, there’s one thing savvy employers in Ontario can’t overlook: compliance with the ESA (Employment Standards Act, 2000). Think of this as your backstage pass to a smooth, celebratory long weekend.
Step One: Know Your Stat from Your Stack of Burgers
Canada Day is a bona fide statutory holiday in Ontario. That means it’s more than just a day for waving tiny flags—it’s one of nine legally recognized days off.
What You Owe (Other Than Cupcakes)
When Canada Day rolls around, and it falls on a regular working day (like it does for many employees next Tuesday), you have three glorious options if your employee qualifies, and they are not otherwise on vacation that day already:
Give them the day off with public holiday pay.
OR (and only if the employee consents to work on the holiday) one of the following alternate options:
Have them work and pay public holiday pay plus 1.5x their regular rate; or
Have them work and give them a different paid day off instead (with public holiday pay) – but be careful. You must let the employee know your plans in writing ahead of time and additional employee consent is needed if the substitute day off is scheduled between 3 and 12 months after the public holiday.
It’s like choosing your own adventure—only with legislative consequences.
The “Last and First” Rule: Not Just a Clever Title
If your employee doesn’t show up when scheduled the day before or after the holiday (without “reasonable cause”), they might not qualify for public holiday pay. And by “reasonable cause,” we mean “legit excuse,” not “I felt the spirit of Canada calling me to Muskoka.”
You must keep records. You must be fair. You must resist the temptation to call their pet’s dental emergency “unreasonable.”
The Holiday Pay Equation: Not Scary, I Promise
Take the employee’s regular wages earned in the 4 weeks before the work week with the public holiday, include vacation pay payable[i] with respect to those four weeks and divide the total by 20. Voilà! You’ve calculated public holiday pay. It’s like magic—but with spreadsheets.
When Canada Day Lands on a Weekend (hello 2028 and 2029)... Plot Twist!
Don’t panic. If your crew doesn’t normally work weekends, the substitute holiday must be observed on a weekday with the same pay perks. Bonus tip: plan your payroll and scheduling ahead of time so no one ends up squinting at their pay stub like it’s written in hieroglyphs.
Quick aside this rule equally applies to employees who were thinking ahead and already had a week-day Canada Day scheduled as a vacation day.
When the Employee is Away on Canada Day ... No need to get your knickers in a knot!
There are a number of reasons an employee may be away from work on Canada Day. In some cases, they are still entitled to public holiday entitlements. Some quick examples:
Employee on a scheduled vacation on Canada Day – Treat them like you would employees when Canada Day falls on a weekend.
Employee on a Pregnancy or Parental Leave, or on a temporary layoff – If the employee is away for one of these reasons, they are entitled to public holiday pay for the day, but no other entitlement. (Remember, the simple math to calculate public holiday pay above – it’s $0 for an employee away without regular wages during the entire 4 weeks).
The Firing Line (Literally)
Thinking of terminating someone around Canada Day? Proceed with caution as an employee might still be entitled to public holiday pay. For example, if they’re eligible for a day that has been substituted for a public holiday, and their employment ends before they can take it. they’re still entitled to public holiday pay.
Even if their tenure ends with a polite meeting and a fruit basket. Legal fireworks are the kind you don’t want so check with your legal advisor in order to ensure the payouts to the terminated employee are correct.
Final Confetti Toss for Employers
Canada Day is more than a statutory pit stop—it’s an opportunity to show your team that celebration and compliance can co-exist in beautiful harmony. Respect the rules (which means know the rules and the exceptions and get legal help if you need it), communicate clearly, and you’ll send the message that your business runs on maple syrup and integrity.
[i] See the MOL’s guide on how to determine the amount of vacation pay payable.
